A transaction is received at NPCI for routing to beneficiary bank/PPI only after debiting the remitting customer’s account. Therefore, the risk of a remittance being made with the remitting customer not having adequate funds does not arise. Once the transaction reaches the beneficiary bank/PPI, it would be treated as “good fund” and the beneficiary bank should credit the beneficiary’s account immediately.
Thus, it would be a real-time money transfer system from the customer’s point of view. However, from the members’ perspective, interbank settlement of debiting the sending bank/PPI and crediting the beneficiary bank/PPI would take place on a net basis four times a day on RTGS working days.